$100 million Venture Capital Fund of Funds
On December 8, 2015 Premier Clark announced that the Province of British Columbia is creating a $100 million venture capital fund-of-funds as part of the foundation of a comprehensive technology strategy aimed at stimulating growth in this fast-moving sector, creating jobs and strengthening a diverse economy.
The Ministry of International Trade is seeking an experienced private sector investment manager to manage this new $100M fund-of-funds, manage the $90M of capital currently committed through the BC Renaissance Capital Fund and build a more robust Provincial venture capital system by increasing the supply of local venture capital, and drawing other investors into B.C.
The new BCTech Fund will be a fund-of-funds which will help BC tech companies access the capital they need to grow, and help the BC venture capital system to strengthen over time.
The deadline for interested private sector fund managers to submit proposals was January 29, 2016. The Ministry is currently evaluating the proposals and it is anticipated that the BCTech Fund will be launched in the summer of 2016.
Venture Capital Programs
Venture capital programs encourage investors to make equity capital investments in British Columbia small businesses that will enhance and diversify the provincial economy. The government recognizes that creating new small businesses and expanding existing ones will contribute to a healthy economy. These programs give small business continuous access to early-stage venture capital to help them develop and expand.
Individual investors are entitled to a 30 percent refundable tax credit on the value of their investment, up to an annual maximum tax credit of $60,000. Corporate investors are entitled to a 30 percent non-refundable tax credit on the value of their investment, however, there is no tax credit limit. Both individual and corporate investors can carry unused portions of tax credits forward for four years. Individual investors who invest in the first 60 days of a calendar year can elect to apply their tax credits to their previous year's tax return. Corporate investors can-not carry tax credits back to the previous year.
Tax Credit Budget Update:
2016 Tax Budget Year
The 2016 tax budget year started on January 1, 2016 and will end on March 1, 2017 - 90 days into the next calendar year. Individual investors who purchase shares in the first 90 days of a calendar year can elect to get a Tax Credit Certificate and apply it to the previous year's tax return. Corporate investors can not do this.
EBCs and VCCs planning to raise tax credit supported investment during the 2016 tax budget year must be issued with a 2016 Equity Authorization by the Ministry. To apply for a 2016 Equity Authorization submit an Additional Equity Application form to your Portfolio Manager (link to application form below).
As tax credit budgets are limited, tax credits are available on a first come first serve basis. Eligible Business Corporations and Venture Capital Corporations, with Equity Authorizations for the 2016 tax budget year, should claim tax credits on behalf of their investors as soon as possible after investment has been raised, and investors have completed a Share Purchase Report.
Tax credits are claimed through the Electronic Tax Credit Application system (eTCA) - link immediately below. Instructions on how to claim tax credits, and print tax credit certificates, are in How to Access eTCA.
Electronic Tax Credit Application System
Tax Credit Budgets
The Province of British Columbia does not in any way guarantee nor express an opinion as to the value of any shares issued by a venture capital corporation or an eligible business corporation, the financial condition of the corporation or the merits of any investment or business proposal.